Market News

Commercials support soybeans, wheat

 

Soybeans were higher on fund and commercial buying. Weekly export numbers remain on target to meet USDA projections. There are some near term harvest delays in South America, but longer term forecasts look conducive for activity. Soybean meal and oil were modestly higher on commercial demand and spillover from beans. Statistics Canada estimates soybean acreage at 5.4 million acres, down 3.4% on the year, and projects canola at 19.4 million acres, a 4.5% decrease.

Corn was lower on fund and technical selling. Weekly export numbers were neutral to bullish, with sales above expectations. Planting remains slow, with more rain and cold temperatures in the forecast for parts of the Midwest. However, other portions of the region are expected to make better progress. Ethanol futures were mixed. Statistics Canada expects 2015 corn acreage to be 3.3 million acres, 6.2% more than in 2014. The International Grains Council projects 2015/16 world production at 951 million tons, up 10 million from the prior estimate.

The wheat complex was mostly higher on fund and commercial buying. The exception was May Chicago. Weekly export numbers were neutral with only six reporting weeks left in the marketing year. There’s more rain in the forecast for the southwestern Plains, but not for most of the northwestern Plains. There’s also more rain expected in the southeastern Midwest. Japan bought 71,900 tons of food wheat from the U.S. and 35,900 tons from Canada. Statistics Canada pegs 2015 wheat acreage at 24.77 million acres, 3.9% above last year, including a 16% rise in durum. The International Grains Council sees 2015/16 world wheat production at 705 million tons, 4 million less than the previous projection.